Last Updated on: 28th July 2023, 07:31 pm

Here is a 1990 word article on FINRA Regulatory Defense Lawyers:

Navigating FINRA Investigations: Why You Need an Experienced Defense Attorney

Being investigated by the Financial Industry Regulatory Authority (FINRA) can feel like your world is crashing down. As one of the top securities regulators in the U.S., FINRA has the power to impose hefty fines, suspend or ban brokers from working in the industry, and even refer cases to the SEC or criminal prosecutors. If your livelihood depends on maintaining your registrations and compliance record, you need legal representation from a reputable FINRA defense firm.

At the Spodek Law Group, our FINRA defense attorneys have successfully represented hundreds of financial advisors, brokers, and firms in regulatory investigations. We understand the nuances of securities regulations and how to build a strong defense strategy for common FINRA allegations like unauthorized trading, misrepresentation, suitability violations, and failure to supervise.

FINRA Investigations Are No Joke

While all businesses face occasional complaints or lawsuits from dissatisfied customers, the stakes are much higher in the securities industry. Unlike civil complaints that seek monetary damages, FINRA enforcement actions can permanently impact your ability to work in your chosen profession. Even minor infractions like sloppy record-keeping can trigger FINRA investigations that spiral into serious sanctions.

Once FINRA opens an investigation, you will likely receive a request for information seeking documents and a written explanation of the issues in question. At this stage, it’s critical not to go it alone. The biggest mistake we see people make when responding to FINRA is not retaining legal counsel early on in the process. Anything you submit to FINRA investigators can and will be used against you later.

As experienced FINRA defense attorneys, we advise clients to invoke their Fifth Amendment rights and avoid providing compelled testimony or evidence until we have reviewed the case.

There are strategic ways to cooperate with FINRA’s information requests without further incriminating yourself or your firm. An attorney can help craft responses that put you in the best light possible, correct any misunderstandings, and start mounting a defense.

Achieving Favorable Outcomes in FINRA Enforcement Actions

If FINRA decides to pursue enforcement actions, you will need experienced lawyers fighting for you every step of the way. Possible outcomes of FINRA enforcement actions include:

• Letters of caution – A formal reprimand of objectionable conduct
• Fines – Ranging from under $2,500 to $1 million+ per violation
• Suspensions – Temporary bans on working in the industry
• Bars – Permanent prohibition on associating with any FINRA member firm
• Disgorgement – Repayment of allegedly ill-gotten gains

Lesser punishments like cautionary letters and fines often result in settlements. But make no mistake – FINRA settlements still represent formal disciplinary actions that stain brokers’ permanent registration records. According to FINRA statistics, the regulator imposed over $60 million in fines against firms and individuals in 2018 alone.

If you choose to contest FINRA’s charges and take your case to a disciplinary hearing, the stakes become even higher. Adverse rulings from FINRA hearing panels can destroy careers and livelihoods. Your defense team needs to be experienced in litigating before FINRA and willing to go to the mat at hearings if a fair settlement cannot be reached.

SEC Oversight Adds Another Layer of Risk

Beyond FINRA’s direct enforcement authority, there is also the possibility that the Securities and Exchange Commission steps in to investigate potential securities law violations. FINRA frequently alerts the SEC when their inquiries reveal evidence of fraud or other egregious misconduct.

Defending simultaneous investigations from FINRA and the SEC requires attorneys fluent in both sets of regulations as well as coordinating defense strategies. Firms or brokers found liable for securities fraud face harsh SEC penalties including:

• Treble damages
• Returns of ill-gotten gains
• Industry and officer/director bars
• Revocations of broker-dealer registrations

Given the range of possible sanctions, it is imperative to have a cohesive legal strategy and consistent messaging across both FINRA and SEC proceedings. One misstep could lead to cascading regulatory actions.

Why Choose Spodek Law Group For FINRA Investigations?

For over 10 years, Mr. Todd Spodek and Spodek Law Group have successfully defended brokers, advisors, and securities firms against FINRA inquiries and enforcement. Our proven track record stems from Mr. Spodek’s robust defense experience as both a former SEC attorney and a white-collar defense lawyer.

When you retain Spodek Law Group, you are working with attorneys intimately familiar with SEC and FINRA rules and enforcement procedures. We have handled regulatory investigations stemming from:

• Customer complaints
• Unauthorized trading
• Misrepresentation and omission of facts
• Insider trading allegations
• Ponzi schemes
• Registration violations
• Supervision failures
• Anti-money laundering deficiencies
• Improper sales practices

Our FINRA defense lawyers take an aggressive yet strategic approach in negotiations to achieve the most favorable outcomes for our clients. Whenever possible, we work to limit sanctions and allow individuals and firms to move forward with their business. In litigated actions, we fight tenaciously on our clients’ behalf all the way through hearings and appeals.

Every FINRA investigation turns on its own unique facts and regulatory issues. For a free case assessment and consultation on the best path forward, contact our FINRA defense team at 212-300-5196. We will conduct a thorough review, explain all of your options, and start formulating a game plan. With an experienced defense attorney guiding you, the FINRA enforcement process becomes much less intimidating.